CORRECTED-INSIGHT-Burger King has maneuvered to cut U.S. tax bill for years

LONDON, Sept. 2 (Reuters) - Burger King may have taken a lot
of flack in the past week for a deal that should curb its U.S.
tax bill but in many ways it is consistent with the burger
chain's aggressive tax-reduction strategies in recent years.

Some U.S. lawmakers and other critics attacked the company
that is the home of the Whopper for deciding to move its tax
base to Canada from the U.S. through its proposed purchase of
Oakville, Ontario-based coffee and doughnut chain Tim Hortons
. They say it will allow Burger King to avoid
paying some U.S. taxes.

That would be nothing new. A Reuters analysis of Burger
King's regulatory filings in the U.S. and overseas, which was
also reviewed by accounting experts, shows that it has been
making major efforts to reduce its U.S. tax bill for some time.

By massaging down U.S. taxable profits while maximizing the
profits it reports in low-tax jurisdictions overseas, Burger
King is able to operate one of the most tax-efficient businesses
in the U.S. fast-food industry.

The chain's effective tax rate of 26 percent over the past
three years compares with rates above 31 percent at McDonalds
Corp, Starbucks Corp and Dunkin Brands Group
Inc. KFC and Pizza Hut owner Yum Brands did
have a similar tax rate to Burger King though this reflects the
74 pct of its revenues that were generated outside the U.S., in
markets where tax rates are typically around 25 percent.

The Burger King rate is 30 percent lower than the average
tax rate it paid in the five years before it was bought in 2010
by private equity group 3G, still the company's majority
shareholder.

The accounting experts say the Canadian move will allow
Burger King to double-down on those efforts as it will open up
new tax-saving opportunities for the company. It could, for
example, apply the tax structures it currently employs in major
markets like Germany and Britain, and which allow the group to
operate almost tax free in those places, to its business in the
United States, they said.
Continued...